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Because we are persuaded that there is a genuine issue as to
a material fact, we shall deny the motion. Our reasoning is as
follows.
Background
The Notice
By notice of deficiency dated September 15, 2003 (the
notice), respondent determined a deficiency in the Federal income
tax of Van Der Aa Investments, Inc. (Investments),1 for its 1999
taxable (calendar) year (1999) in the amount of $62,604,069, an
addition to tax on account of delinquency under section
6651(a)(1) (the delinquency addition) in the amount of
$12,520,814, and an accuracy-related penalty under section 6662
(the accuracy-related penalty) in the amount of $3,124,797. For
1999, Investments made a Federal income tax return as an S
corporation.2 On that return, among other things, Investments
reported a built-in gain tax liability of $1,520,140. The
deficiency in tax determined by respondent results from his
adjustment increasing Investments’s built-in gain tax liability
from $1,520,140 to $64,124,209.
1 Petitioner, Terry L. Van Der Aa, trustee, refers to the
corporate entity Van Der Aa Investments, Inc., as “petitioner”.
We shall use the term “petitioner” to refer to Terry L. Van Der
Aa, trustee, and the term “Investments” to refer to Van Der Aa
Investments, Inc.
2 See sec. 1361(a) for definitions of the terms “S
corporation” and “C corporation”.
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